UNICREDIT IN THE NEWS: Q3 RESULTS

Bloomberg, Reuters, Repubblica.it and the FT all highlighted the fact that UniCredit’s third quarter profits comfortably beat expectations. The FT went on to say the bank was “boosted by its decision to take some of the highest loan loss provisions in European banking during the early days of the pandemic” and remarked on the bank’s non-performing loan portfolio, saying it’s now the lowest in Italy.

The FT’s influential Lex column referenced UniCredit’s strong capital position and the bank’s plans to return “a big chunk to shareholders” rather than pursue riskier M&A. It also noted that UniCredit was “well provisioned against loan losses” and able to deal with tougher regulation.

Over in the Italian media, the bank’s preference for transformation and using its strong balance sheet to support clients and communities rather than M&A was highlighted by several newspapers including Corriere, Repubblica and Il Sole 24 Ore.  The bank’s no M&A stance was also picked up in Germany with Frankfurter Allgemeine Zeitung headlining its article with “UniCredit rejects MPS.”

Our German and Austrian coverage included Börsen-Zeitung (“UniCredit recovers in the third quarter”) and Die Presse (“UniCredit delivered good results”). In Austria, Der Standard focused on UniCredit’s decision to halt its sub-holding project, something also analysed by Reuters in its popular Breakingviews column.

Media, including Il Sole 24 Ore quoted Jean Pierre Mustier’s welcome to chairman designate Pier Carlo Padoan, especially “his extraordinary professional experience that will be very valuable to the Group.”

Several titles – including Dow Jones and Reuters – remarked on UniCredit’s plans to resume dividend payments in 2021, quoting Jean Pierre Mustier as saying the ECB’s green light for European banks to resume payments was a matter of “when, not if.” The fact that UniCredit also confirmed its 2021 targets was also widely reported.